No discussion on GST borrowing options at parliamentary panel meet: Report

The clarification came in the wake of reports which claimed that the finance ministry told the committee that the attorney general would be consulted again on the issue of GST compensation to states
Sources clarified on Friday that there was no discussion on the borrowing options for goods and services tax (GST) compensation given by the Centre to states at a meeting of the parliamentary standing committee.

 
The clarification came in the wake of reports which claimed that the finance ministry told the committee that the attorney general would be consulted again on the issue of GST compensation to states. Sources said that the reports were completely incorrect.

 
Sources in know of the matter said that during the meeting of the parliamentary panel there was only a discussion on the CAG report on GST collection for FY19.

 
Sources said that the attorney general had already opined that there was no obligation on the Centre, under GST laws, to compensate for the loss of revenue. According the attorney general, it is the GST council which has to find ways to meet the shortfall in compensation and not the central government.

 


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